IMF trims growth forecast for India

The International Monetary Fund (IMF) has lowered India's growth projection to 6.7 percent in 2017, 0.5 percentage points less than its previous two forecasts in April and July in its Global Economic Outlook report, attributing it to demonetisation and introduction of the Goods and Services Tax.

It has also lowered the country’s growth for 2018 to 7.4 percent, 0.3 percentage points less than its previous two projections in July and April.

Notably, The IMF upgraded its global economic growth forecast for 2017 by 0.1 percentage points to 3.6 percent, and to 3.7 percent for 2018, from its April and July outlook, driven by a pickup in trade, investment, and consumer confidence.

“However, India is likely to regain the tag of the fastest growing emerging economies of the world in 2018, with China projected to grow at 6.5 percent in 2018” said the Global Economic Outlook released by IMF.